SOUTH EUCLID The city and the Coral Co. have reached a final agreement setting parameters for the rebuild of Cedar Center.

Coral is the developer of what will be called Cedar Center North, on the north side of Cedar Road, at Warrensville Center Road.

While there have been rumblings that the project had stalled or would be canceled -- Coral President Peter Rubin and city officials steadfastly denied these rumors -- the agreement means the project will definitely proceed, with a change.

The project will be done in four phases. This change is an acknowledgement that the sluggish economy has changed the way money is loaned.

"Banks and financial institutions have stopped lending unless 90 percent or more of a property is leased," said Community Services Director Keith Benjamin. "It used to be that only 40-50 percent was needed."

By proceeding with the project in smaller increments, rather than doing it all at once, as was first proposed, it is thought that the lending process will be in accordance with current practices.

The old Cedar Center, for which South Euclid paid $1.8 million, has been completely demolished, and the city now owns the land. The city will sell the land to Coral as the phases unfold, and after assessors evaluate the property's worth.

South Euclid bought the site for $17 million in 2007.

Environmental cleanup, for which the city received just over $1 million in county money, is now taking place.

Four phases

The city has requested of Coral a mixed-use development that will include retail, office, residential and, possibly, hospitality uses. The project will also include a public green space big enough to accommodate events such as band concerts, farmers markets and art festivals.

The first phase will include construction on the eastern half of the site, fronting Cedar Road. The second phase will also front Cedar Road, but encompass the western half of the development.

The third phase will see work done north of the second phase, to the rear of the property, backing up against Stanhope Drive, which has long served as a Cedar Center easement.

The agreement calls for Coral to submit to the city by Aug. 31, a preliminary site plan for the first phase, and a master plan for the entire project.

If Coral does not deliver on time, unless the city allows an extension beyond Aug. 31, South Euclid can terminate the agreement.

Right on schedule

Rubin said Tuesday that the plan is well underway and will be completed on time.

"The design plans are well underway and, as far as the leasing, we have all but one space in either the leasing or letter of intent phase. The first phase will include 30,000 square feet of space. So, of nine or 10 spaces, we have all but one leased or with a letter of intent."

Further, Benjamin said, if Coral is unable to proceed with a phase, the city has the right to find another developer who will.

"This is a milestone," said Ward 4 Councilwoman Jane Goodman, before council approved the agreement by a 6-0 vote Monday. Councilman at-large Robert Hartigan was not present.

"This sets remarkable goals," she said. "This sets a timetable. This is the most real thing, I think, that has happened , so far (with the project)."

Goodman said people living in other cities have taken notice that South Euclid and Coral are proceeding with the project in the face of the recession.

Ripple effect

Of the impact of Cedar Center North, Goodman said, "This is going to spread to neighboring streets and neighborhoods. It's going to set up a ripple effect."

"I'm excited and I think the people of South Euclid are going to be excited," said Mayor Georgine Welo.

Council President Moe Romeo spoke about how the city, in 2001, had hopes of developing a new Cedar Center to replace the 55-plus-year-old shopping center, but the Sept. 11 terrorist attacks derailed such a plan. This year, it's been the recession that has provided a challenge.

Romeo said the city's leaders have continued to battle to reach this point.

"One of the reasons I am running for re-election to council is that I want to see this (Cedar Center re-development) firsthand," he said.

Welo said that redevelopment of Cedar Center was the number one goal of her predecessor, former mayor John Kocevar, and it has been her top goal, too.

With the agreement in place, Welo said, "We've conquered this."

Rubin said, "I think the mayor's remarks are warranted."

Costs unknown

Benjamin said that costs are not yet known for the project, but that the agreement helps line up events whereby costs will be known. That's because the project's layout will soon be known.

The project will be aided by tax increment financing, whereby property taxes expected to be generated by the upgrades are used in advance to pay for the building of the development.

Because Cedar Center is located in the Cleveland Heights-University Heights school district, that district must approve the use of TIF money.

TIF money can only be used on public improvements at the new Cedar Center, including the green space, sewers and parking area.

"These public improvements will be funded by TIF money and paid with annual property tax payments made by the developer," Benjamin said.

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